In 2012, when State Bank of India invited applications for 1,000 probationary officer posts, around 5.1 lakh candidates across the country lined up for a shot.

This year, when the country's largest bank advertised for 1,500 vacancies for the same roles, 1.7 million candidates applied. If 510 candidates applied for every job available in 2012, 1,142 are now in the race for every probationary officer slot. Why such a jump in one year? "The lacklustre job market, competitive entry-level salaries and the perks have made us even more attractive," says SBI chief general manager (HR) Ranjit Goswami.

"In a dull market, any good opportunity is seeing a more-than-usual number of applicants. And SBI ranks right up there in terms of good opportunities," says A G Rao, managing director, ManpowerGroup India. Earlier this month, the Manpower Employment Outlook Survey of 5,370 employers across India reported that year-on-year hiring prospects have weakened by 19 percentage points. "Job security is naturally a big factor. Also, despite being a government organisation, SBI operates in a professional manner. Probationary officer positions are not just empowered but very well-paid as well," added Rao.

In the ongoing economic slowdown, with even IIM placements affected and the finance sector hit hard, jobs in public sector banks (PSBs), and particularly in SBI, are looking more attractive than ever before.

Not that it's ever suffered from a dearth of takers. Educated Indian middle class youth have always applied in large numbers for the SBI probationary officer exam. Job security is one big reason - an attribute ranked No 1 in terms of drivers of attraction by below 30-year-olds in the Towers Watson 2012 Global Workforce Study.

The pay too, more than holds its own against the private sector. The starting basic pay is Rs 16,900 applicable to junior management grade Scale 1 and the official will also be eligible for DA and HRA, the latter ranging from Rs 8,000 in rural areas to as much as Rs 29,500 in Mumbai. There are also medical benefits, loans at concessional rates, as well as other perks. The compensation per annum in Mumbai is pegged at Rs 800,000-plus.



The package is likely to see a further upswing soon after the unions and management wrap up their wage negotiations. "It may take another 6-7 months or more but the raise will be effective from November 2012," says Goswami. There are other reasons too. Making the final cut here depends only on the performance in the exam and the subsequent interviews. Previous academic records aren't taken into account; nor is the exam - as in the case of CAT - tilted in favour of those of a certain academic background. A Mukherjee, a B.Com graduate and PO hopeful, has been preparing for the last 3-4 months to crack the exam. "Unlike competitive exams, past academic scores don't matter. So it's a level playing field."

Says Randstad India MD& CEO E Balaji: "Even some of the most senior people at several MNC banks would have spent time in SBI at some point in their career. The scale SBI handles and the exposure it gives is huge."

At SBI, almost every senior official has gone through the probationary officer route to rise up the ranks. "The concept of lateral entry is practically non-existent. It happens only in specialised positions like IT and engineering, almost never in core banking," says Goswami.

He says that the bank's attrition rate is quite low. "In the next 2-3 years, some 5-6% of people at this level will leave the organisation, some to pursue studies, others for other jobs. After 4-5 years, very few people leave." Promotions apart, postings abroad, job rotation, training at premier institutions, including the IIMs, are among the rewards and recognition initiatives the bank doles out to its best and brightest.

Once through, probationary officers are on probation for two years, where they go through training. Post this, a confirmation test is held, on the basis of which high performers make it through to the next higher grade - officer middle manager grade Scale II.

Source : EC